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India Mobile Phone Cumulative Production Crosses 2 Billion Units Under ‘Make in India’ Initiative

India’s mobile phone production grew at a CAGR of 23% during 2014-2022 to cross a cumulative 2bn units.
The huge internal demand, increasing digital literacy and government push are the major reasons for this growth.
India is now the second-biggest mobile phone-producing country.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – August 14, 2023

‘Made in India’ mobile phone shipments crossed the 2-billion cumulative units mark under the ‘Make in India’ initiative during 2014-2022, registering a 23% CAGR, according to the latest research from Counterpoint’s Made in India service. The huge internal demand, increasing digital literacy and government push are the major reasons for this growth. As a result, India has become the second-biggest mobile phone-producing country. The Indian government has introduced schemes and initiatives such as the Phased Manufacturing Program (PMP), Make in India, Production Linked Incentive (PLI) and Atma-Nirbhar Bharat (Self-Reliant India) to increase local manufacturing and value addition.

Research Director Tarun Pathak said, “India has come a long way in mobile phone manufacturing. We have seen local manufacturing increase over the years to meet domestic demand. In 2022, more than 98% of shipments in the overall Indian market were ‘Made in India’, compared to just 19% when the current government took over in 2014. We have also seen increasing local value addition and supply chain development in the country. Local value addition in India currently stands at an average of more than 15%, compared to the low single digits eight years ago. Many companies are setting up units in the country for manufacturing mobile phones as well as components, leading to growing investments, increasing jobs and overall ecosystem development. The government now intends to capitalize on its various schemes to make India a ‘semiconductor manufacturing and export hub’. Going forward, we may see increasing production, especially for smartphones, as India gears to bridge the urban-rural digital divide and also become a mobile phone exporting powerhouse.”

‘Made in India’ Mobile Phones Shipment Share in Local Market, 2014-2022

Source: Counterpoint’s ‘Made in India’ Research, 2022

On the Indian government initiatives, Senior Analyst Prachir Singh said, “The Indian government has launched and executed many schemes, which has resulted in a big jump in mobile phone manufacturing over the years. Under the ‘Make in India’ initiative, the government introduced the Phased Manufacturing Program and increased import duties on completely built units and some key components over the years to push local manufacturing and value addition. Under the Self-Reliant India scheme, the government introduced the Production Linked Incentive (PLI) scheme for 14 sectors, including mobile phone manufacturing. Due to all this, exports from India have increased. Going forward, the government is focused on making India a semiconductor hub. It has proposed a semiconductor PLI scheme and now is focusing more on infrastructure with a proposed investment of $1.4 trillion.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Prachir Singh

Tarun Pathak

Follow Counterpoint Research

press(at)counterpointresearch.com

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India Neckband Shipments Declined 9% YoY in 2022

boAt led the market with a 27% share, while OnePlus and realme took the second and third spots respectively.
Indian brands took a 62% share in 2022, grabbing seven spots in the top-10 list.
The entry-level price band (<INR 1,000 or around <$13) is becoming a sweet spot, taking almost one-third share in 2022.
OnePlus took the top spot in Q4 2022 for the very first time with a 20.2% share.
OnePlus’ Bullets Wireless Z2 Edition was the best-selling device in 2022 with a 14% share in the overall neckband market.
Sony led the mid-segment (INR 3,000-INR 5,000) in 2022 with a 37% share.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – March 22, 2023

India’s neckband market shipments declined 9%YoY in 2022, according to the latest research from Counterpoint’s IoT Service. This decline was primarily due to seasonality and rising competition between hearable types. Indian consumers have started preferring Truly Wireless Stereo (TWS) devices over neckbands, especially due to their sleek design, newly added features and affordable prices. However, the demand for neckbands is still strong in the Indian market as many consumers use neckbands as a secondary device that is affordable, ideal for longer usage and suitable for applications like running, workout and travelling.

Commenting on the market trends, Senior Research Analyst Anshika Jain said, “Indian neckbands are expanding towards the low-price tier of <INR 1,000 (or around <$13), which reached its highest ever share of 32% in 2022, up from 20% in 2021. Many brands are focusing on this tier to acquire the wired earphone user base. Over 80 brands entered the neckband market in 2022, reflecting the growth potential of this market. In terms of distribution, online channels contributed nearly three-fourths of total shipments with Flipkart taking the lead followed by Amazon. boAt, OnePlus and Boult Audio were the top-selling brands in the online segment.”

Jain added, “In 2022, the homegrown brands captured seven spots in the list of top 10 brands with boAt taking the top spot. However, the contribution of local brands remained at 62% (showing a slight dip compared to 2021) as Chinese brand OnePlus started gaining prominence with its Bullets Wireless Z2 model. In fact, in Q4 2022, OnePlus became the top player in India’s neckband market for the very first time. Global brands took only a 3% share led by Sony, Samsung and JBL. Sony led the mid-segment (INR 3,000-INR 5,000) in 2022 with a 37% share.”

Talking about the local manufacturing scenario, Research Analyst Akshay RS said, “In 2022, domestic manufacturing contributed 13% of total shipments, up from just 2% in 2021. With boAt, Mivi and Boult Audio ramping up their local manufacturing capabilities, these brands together accounted for over 75% of the total domestic shipment volume in 2022. Noise, Gizmore, Portronics, Aroma, pTron and Wings also started offering locally produced neckbands in 2022.”

Source: India Hearables (Neckband) Shipments, Model Tracker, Q4 2022

Note: boAt’s share includes Tagg and Defy shares

Market summary for 2022

boAt maintained its lead with a 27% market share driven by its wide range of products in the budget segment, multiple celebrity endorsements and aggressive festive season promotions. The boAt Rockerz 255 Pro Plus was the second most popular neckband in the market and captured a 17% share in the brand’s portfolio. boAt took five spots in the top 10 best-selling neckbands.
OnePlus maintained its second spot with an 18% market share driven by the growing popularity of the Bullet Wireless Z2 model. Also, the Bullets Wireless Z2 model was the best-selling device in the market and contributed 14% share of the total neckband volume.
realme took the third spot in the top five neckband brands’ rankings with a 7% market share. The Buds Wireless 2 Neo drove the majority of its shipments followed by the Buds Wireless 2S. Strong channel presence, installed smartphone base and value-for-money offerings were the major factors that pushed its growth.
Boult Audio grabbed the fourth spot with a 5% share driven by its wider portfolio across price bands. The brand is picking up in the domestic manufacturing space. The Boult Audio Curve model was the brand’s bestseller, capturing a 31% share.
Ubon rose to the fifth spot with a 3% share. The brand focused on launching more devices in the affordable segment. Almost two-thirds of its volume was driven by online channels.

Source: India Hearables (Neckband) Shipments, Model Tracker, Q4 2022

Note: boAt’s share includes Tagg and Defy shares

Market summary for Q4 2022

India’s neckband shipments saw a 36% YoY decline in Q4 2022 due to the high volumes of inventory that were moved to the channels during the festive season and changing customer preferences.
OnePlus led India’s neckband market for the first time with a 20.2% share, while boAt captured the second spot with a 16% share. OnePlus’ Bullets Wireless Z2 was the best-selling neckband for the third consecutive quarter with a share of 20% in Q4 2022.
Boult Audio, Mivi and Aroma were the fastest-growing brands in Q4 2022. Domestic production and budget offerings took the brands to the top-five list.
The shipment volume of the <INR 1,000 price band (or around $13) grew 15% YoY in Q4 2022. Boult Audio drove the volume for this price band with an 18% share, followed by Aroma, Signature and boAt.
In Q4 2022, domestic manufacturing saw rapid growth, contributing one-fourth of the total shipments.
Noise, Zebronics, pTron and Signature were the other emerging brands in Q4 2022 that made a mark in the top-10 list.

According to a recent consumer study by Counterpoint, 15% of TWS users prefer to plan for other forms of wireless earphones, like neckbands, as their next purchase. India’s neckband market is approximately 1.3x of its TWS market. Going forward, competition can be expected between the neckband and TWS segments as some users prefer neckbands due to convenience during workouts. However, we will continue to see more innovation happening in the TWS category.

Background

‘Made in India’ TV Shipments Grow 33% QoQ in Q3 2022; TWS Leads Electronic Wearables Segment Local Manufacturing

Dixon led the Made in India TV shipments, followed by Radiant.
Bharat FIH led the Made in India TWS shipments, followed by Padget.
Optiemus led the Made in India smartwatch shipments.
Samsung, Dixon and Wingtech were the top three tablet manufacturers.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – January 10, 2023

‘Made in India’ TV shipments grew 33% QoQ in Q3 2022 (July-September) to reach over 5 million units, according to the latest research from Counterpoint’s Made in India service. In the electronic wearables category, the TWS segment led in terms of local manufacturing with almost 34% of its shipments being manufactured in India.

Commenting on the local manufacturing ecosystem, Senior Research Analyst Prachir Singh said, “The TV market showed high QoQ growth due to the festive season, which drove the consumer demand, increasing the local manufacturing shipments as well. The top five manufacturers contributed to more than 55% of the locally manufactured TV shipments in Q3 2022. Local manufacturing continues to stay robust for segments like smartwatches, TWS, tablets and neckbands also. The local manufacturing share in the TWS segment increased to 34% in Q3 2022 from 16% in the previous quarter. Bharat FIH, Padget, Avishkaran and Optiemus were the top four brands and cumulatively contributed to almost 90% of the locally manufactured TWS shipments. In the tablets category, Samsung, Dixon and Wingtech contributed to more than 90% of the locally manufactured shipments. However, in the smartwatch category, Optiemus dominated the local manufacturing and contributed to more than 90% of the shipments.”

Source: Counterpoint Made in India Research, Q3 2022

On the Indian government’s focus, Senior Research Analyst Anshika Jain said, “Under the Made in India theme, local manufacturing aims to even go beyond smartphones to cover segments like audio products, wearables and EVs. More and more efforts are being made to make the country a significant player in the global value chain. These efforts now also include semiconductor manufacturing. Many states like Gujarat have even come out with their own semiconductor policies and are bringing about associated reforms and policy changes (like labour and land reforms in Karnataka) to harness India’s potential in this space.”

The government’s vision to increase local manufacturing as well as design capabilities in India will impact the local value addition in the wearables segment. We may see many companies increasing their capacities, with the new entrants also opting for local manufacturing.

Notes:

Dixon Technologies’ share does not include Padget Electronics.
Avishkaran Enterprises manufactures for Mivi.

Background

Analyst Contacts

Prachir Singh

Priya Joseph

Tarun Pathak

Follow Counterpoint Research

iTriangle Leads India Telematics Ecosystem; EVs to Drive Telematics Demand

Telematics shipments in India are expected to reach 50 million units in 2030 at a CAGR of 31% from 2021.
Rising demand for EVs, ubiquitous 4G connectivity and favourable policies will act as potential drivers.
According to Counterpoint’s CORE evaluation, iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – November 25, 2022

India is the world’s second-largest automotive and mobility market in terms of production volume. It offers significant opportunities for connected telematics due to its sheer scale as well as the growing design and manufacturing ecosystem. Telematics penetration in 2021 was just 2% of the total number of vehicles on the road. According to Counterpoint’s India Telematics Ecosystem Analysis, telematics shipments are expected to reach 50 million units in 2030 with a CAGR of 31% from 2021. Currently, iTriangle leads the overall rankings for India’s telematics ecosystem in Counterpoint’s CORE evaluation.

Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “Presently, India’s telematics market is at a nascent stage but there is a steady demand for telematics devices. High import dependency, lack of advanced technology adoption, and infrastructure challenges have all been inhibitors. However, the rising demand for electric vehicles, ubiquitous 4G connectivity, favourable government policies, and schemes related to design and manufacturing, such as PLI and Make in India, will act as potential drivers for the demand for connected telematics devices for different mobility applications.”

To understand the future trajectory of India’s telematics space, Counterpoint Research analysts evaluated the top 15 players using the proprietary CORE analysis technique.

iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch. With the growing market demand, domestic players such as Blackbox, Rosmerta, Nippon, Accolade and Volty are expected to give strong competition to top players in the coming times.

iTriangle’s expertise in different aspects of manufacturing and ecosystem creation has pushed the company to initiate business in Thailand and other Southeast Asian markets. iTriangle is one of the few Indian companies to cross international borders in the telematics space.

Detailed insights into the Indian telematics market opportunity, devices, policies, use cases and recommendations are all captured in a comprehensive white paper published on our portal.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

CORE is a competitive ranking evaluation that evaluates a player across important criteria. For the study of Indian telematics players, Counterpoint took seven categories and more than 45 sub-categories under its CORE analysis. Each of the categories and sub-categories was selected carefully so that they reflected the existing market, current developments, future trajectory and market acceptance of each player. Counterpoint ranked each of the top 15 players on a scorecard based on the latest publicly available information and primary interviews based on the above categories. Exhaustive secondary research was conducted to gather all the information available publicly.

Analyst Contacts

Soumen Mandal

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

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Meet Counterpoint at IESA Vision Summit 2022

We will be attending the IESA Vision Summit from October 12 – October 13

Our analysts Ashwath, Priya, Tarun and Neil will be attending the IESA Vision Summit 2022 at The LaLiT Ashok Bangalore. You can schedule a meeting with them to discuss the latest trends in the technology, media and telecommunications sector and understand how our leading research and services can help your business.

To get live IESA Vision Summit updates you can watch this space or follow us on Twitter Follow @CounterPointTR

Click here to schedule a meeting with them.

About the event:

The 17th edition of IESA flagship event, IESA Vision Summit 2022 is scheduled on 12th and 13th October 2022 in Bengaluru. This is our flagship event where most of the Semiconductor and ESDM companies from India and the world come under one roof. The objective of the event is to enable DESIGN IN INDIA and to give opportunities to INDIAN BRANDS of electronic products to showcase their products for bigger outreach. The event aims to showcase the ecosystem partners as well who would help MAKE IN INDIA to happen.

‘Made in India’ Smartphone Shipments Grew 16% YoY in Q2 2022; Domestic Manufacturing Push in Wearables Continues to Grow

OPPO led the ‘Made in India’ smartphone shipments with a 24% share, followed by Samsung.
Lava led the ‘Made in India’ feature phone shipments with a 21% share.
In the wearable segment, TWS led in terms of domestic manufacturing with a 16% contribution, followed by neckbands and smartwatches.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – Sept 16, 2022

‘Made in India’ smartphone shipments grew 16% YoY in Q2 2022 (April-June) to reach over 44 million units, according to the latest research from Counterpoint’s Made in India service. This was the first quarter of the new financial year and the companies pushed for higher output to meet the criteria for PLI incentives.

Commenting on the local manufacturing ecosystem, Senior Research Analyst Prachir Singh said, “The Made in India smartphone shipments grew as compared to last year. During the quarter, we witnessed increasing investments in the Indian manufacturing ecosystem with new plants being set up as well as existing ones being expanded. Recently, OPPO announced the Vihaan initiative under which it plans to invest $60 million in the next five years to empower the local supply chain. Samsung also increased its manufacturing with the premium segment smartphones, especially the Galaxy S series. Going forward, the upcoming festive season will further drive the Made in India shipments due to the expected increase in local demand.”

On the manufacturing landscape and strategies, Singh said, “In the smartphone segment, in-house manufacturing contributed to almost 66% of the total Made in India shipments in Q2 2022, while the rest of the 34% shipments came from third-party EMS players. OPPO led the Made in India shipments with a 24% share, followed by Samsung and vivo. Among the third-party EMS players, Bharat FIH, Dixon and DBG were the leading players during the quarter. Padget Electronics (396% YoY), Wistron (137% YoY) and Lava (110% YoY) were the fastest growing smartphone manufacturers during the quarter in terms of shipments. Also, we may see disbursement of PLI incentives during Q3 2022, which will further boost the local manufacturing sentiments. In the feature phone segment, Lava led the Made in India shipments, capturing more than 21% share. Lava is also the leading mobile phone player among the Indian brands in terms of shipments. It is the only company that is designing its products in India. Going forward, Lava is expected to expand its product portfolio as well as manufacturing capabilities.”

Source: Counterpoint Made in India Research, Q2 2022
Note: Figures may not add up to 100% due to rounding

The local manufacturing push is now impacting other product segments as well, particularly the CIoT segments. The Indian government’s push with multiple PLI schemes has been showing a positive impact and we saw increased local manufacturing share in product segments like smartwatch, TWS, neckband and tablet. Optiemus leads the Made in India shipments for smartwatches with more than 75% share. In TWS, Optiemus, Bharat FIH and Padget are the top three manufacturers. In the neckband category, VVDN and Mivi have a 90% share in the Made in India shipments. In the tablet category, Wingtech, Samsung and Dixon are the top players while in the TV category, Dixon, Radiant, Samsung and LG have a 50% share in the Made in India shipments.

Source: Counterpoint Made in India Research, Q2 2022

On the Indian government’s focus, Research Analyst Priya Joseph said, “The government aims to make India an electronics manufacturing hub in the next four to five years. In its vision document released earlier, the government considers consumer electronics segments like smartphones, laptops, tablets, TVs, TWS and electric components as among the most promising for India’s transformation as an electronics hub. To help drive more initiatives under the themes of Make in India and Digital India, the government, in its last budget, pushed the total allocation to $936.2 million. This step not only aims to incentivize India-based manufacturing but also catalyse investments in the sector to support job creation, ease of doing business, import reduction and export promotion.”

Going forward, with the Indian government’s additional focus on building an overall ecosystem for semiconductors in the country, the country will witness a rapidly expanding electronics manufacturing and innovation ecosystem. By doing so, it does not only aim to become an important destination for manufacturers and investors but also ensure its strategic position in the global value chain.

Notes:

OPPO manufactures smartphones for OPPO, realme and OnePlus.
Bharat FIH manufactures smartphones for Xiaomi.
Dixon Technologies manufactures smartphones for Samsung.
Dixon Technologies’ share does not include Padget Electronics.

Background

Analyst Contacts:

Prachir Singh

Priya Joseph

Tarun Pathak

Follow Counterpoint Research

Consumption of Indian Semiconductor Components to Climb to $300-Billion Cumulative Revenue During 2021-2026

Mobile and wearables, IT and industrial segments currently contribute around 80% of the semiconductor revenues in India.
‘Make in India’ and Production Linked Incentive schemes will boost local sourcing of semi-components in the coming years.
Further policy reforms and building of a semiconductor ecosystem will reduce reliance on imports going forward.

New Delhi, Seoul, San Diego, Buenos Aires, London, Hong Kong, Beijing – August 16, 2022

India’s semiconductor component market will see its cumulative revenues climb to $300 billion during 2021-2026, according to the ‘India Semiconductor Market Report, 2019-2026’, a joint research by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research. IESA is the premier industry body representing the ESDM and intelligent electronics industry in India. It acts as a trusted knowledge partner to the central and state governments, helping devise policies and incentives for the industry to attract investments into India. The comprehensive research on India’s semiconductor market focuses on the bottom-up modelling unit as well as revenue demand for semiconductor components covering the entire Bill of Materials (BoM) of multiple end-device and equipment categories across seven major sectors in India – Mobile and Wearables, Information Technology, Automotive, Industrial, Telecom, Aerospace and Defence, and Consumer Electronics – from domestic consumption as well as export perspective. The report provides detailed recommendations, potential policies and a framework for building a robust domestic semiconductor ecosystem to boost local production and sourcing.

Source: India Semiconductor Market Report

IESA CEO and President Krishna Moorthy said, “Before the end of this decade, there will be nothing that will not be touched by electronics and the ubiquitous ‘chip’. Be it fighting carbon emissions, renewable energy, food safety, or healthcare, the semiconductor chip will be all-pervasive. Imagine this – all children all over India get educated in virtual classrooms by the country’s best teachers. The chip makes it possible. Again, imagine everyone in the country gets quality healthcare and diagnostics done remotely. Medicines are delivered by drones at your doorstep, even in the farthest villages of India. The chip will make it possible, and we will see this in front of our eyes very soon. Let us make India the semiconductor nation.”

India is poised to be the second largest market in the world from the perspective of scale and growing demand for semiconductor components across several industries and applications. This demand is being pushed by the increasing pace of digital transformation among the country’s consumers, enterprises and public sector through the adoption of new technologies, from advanced connectivity to content consumption to the cloud. These cover smartphones, PCs, wearables, cloud data centers, Industry 4.0 applications, IoT, smart mobility, and advanced telecom and public utility infrastructure.

Mobile and wearables, IT and industrial sectors alone contributed to almost 80% of the semiconductor revenues in India in 2021. Commenting on the mobile and wearables industry, Research Director at Counterpoint Research Tarun Pathak said, “The mobile and wearables sector was the biggest contributor to India’s semiconductor industry in 2021. Mobile devices have become a primary tool for internet connectivity given that broadband and laptop/PC penetration remains low. In the last five years, the ‘consumer digital transformation’ has accelerated with the availability of cheap mobile internet, and mobile devices have connected a big part of the Indian population. Also, the gradual shift from feature phones to smartphones has been generating increased proportions of advanced logic processors, memory, integrated controllers, sensors and other components. This will continue to drive the value of the semiconductor content in smartphones, which is still an under-penetrated segment in India, aided by the rise of wearables such as smartwatch and TWS.”

Commenting on the potential opportunity in the mid-to-long term, Counterpoint Research Vice President Neil Shah said, “The next big boom for semiconductor components will come from across sectors. However, the telecom sector with the advent of 5G and fiber network rollout will be a key catalyst in boosting the semiconductor components consumption. This consumption will not only come from the advanced semiconductor-heavy 5G and FTTH network infrastructure equipment, which will contribute to more than 14% of the total semiconductor consumption in 2026, but also from the highly capable AI-driven 5G endpoints, from smartphones, tablets, PCs, connected cars, industrial robotics to private networks. Also, ongoing efforts to embrace cleaner and greener vehicles (electric vehicles) will provide an impetus for the automobile industry to adopt advanced technologies, which in turn will boost the demand for semiconductor components in India. Consumer electronics, industrial, and mobile and wearables will be the other key industries for the growth of the semiconductor market in India. Further, this semiconductor demand will not only be driven by domestic consumption but also by the growing share of exports.”

In 2021, India’s end equipment market stood at $119 billion in terms of revenue. It is expected to grow at a CAGR of 19% from 2021 to 2026. The Electronic System Design and Manufacturing (ESDM) sector in India will play a major role in the country’s overall growth, from sourcing components to design manufacturing. The semiconductor industry in India is on a path to immense growth over the next few years to help India’s economy reach the next stage for both domestic consumption and exports. While the country is becoming one of the largest consumers of electronic and semiconductor components, most components are imported, offering limited economic opportunities for the country. Currently, only 9% of this semiconductor requirement is met locally.

The demand for semiconductors is growing astronomically worldwide. However, multiple factors, including the pandemic and global geopolitical events, have heavily impacted the manufacturing of the components. This research is aimed at analyzing the market situation, manufacturing supply chain, and prospects for India as a premier manufacturing destination not only for finished goods but also for semiconductor components. While the local production is currently low, India has immense potential to become a leading semiconductor component supplier in the coming years, provided the talent pool and resources are utilized correctly. The government’s initiatives, from ‘Make in India’ to Production Linked Incentive (PLI), will help accelerate this journey but will need some additional reforms to increase local manufacturing and sourcing of semiconductor components. If this is done, the semiconductor market can be a major contributor to economic growth, and India’s push to become a $5-trillion economy.

IESA Vice President Sunil G Acharya said, “Semiconductors will be inside everything intelligent. India is becoming a tech-centered growth story with advancing technologies and innovation being integral to democratizing access. The semiconductor study will play a major role in India’s growth. A large young population combined with an increased focus on digitalization, advancing skill levels, growing manufacturing and foreign investment traction will take India’s semiconductor industry to the next level in the coming years.”

Commenting on the current stage of local manufacturing, Research Analyst at Counterpoint Research Shivani Parashar said, “To achieve India’s semiconductor vision, a robust and indigenous technology ecosystem will be required to build on the existing policy foundation through PLI-like schemes. Renewed focus is needed for incentivizing the country’s design ecosystem in a manner that helps create a stronger foundation for design-led manufacturing and allied sectors, be it for local consumption or exports. This strategy will transform the landscape in the coming years to drive local sourcing trends. The share of local sourcing is expected to grow to over 17% by 2026. This translates into a six-fold rise in potential locally-sourced semiconductor revenues.”

IESA Vice President (Public Policy, Government and Corporate Relations) Anurag Awasthi said, “From safety razors to space shuttles, everything will be powered by the chip. Let us ensure our chips are not down in the world of tomorrow! Keeping this as an aim, MeitY is working further towards making India one of the next technology powerhouses, especially in a pandemic-struck world where there has been a realization of the need for more flexible and diverse supply chain ecosystems. The government is keen to leverage India’s existing strengths in mobile manufacturing, software and start-up hubs for other critical industries in the ESDM sector.”

Research Analyst at Counterpoint Research Priya Joseph added, “Government policies including PLI, New Electronics Policy, 2019, Electronics Manufacturing Clusters, and Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS) are all being equipped to boost domestic design, manufacturing and assembly. To help drive more initiatives under the themes of Make in India and Digital India, the government, in its last budget, pushed the total allocation to $936.2 million. This step not only aims to incentivize India-based manufacturing but also catalyze investments in the sector to support job creation, ease of doing business, import reduction and export promotion.”

To access the full report, please contact IESA at the coordinates below.

Vine Sophia Email: sophia@iesaonline.org

Feel free to contact us at press(at)counterpointresearch.com for questions regarding semiconductor research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Shivani Parashar

Neil Shah

Tarun Pathak

Priya Joseph

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

OPPO Leads ‘Made in India’ Smartphone Shipments in Q1 2022; Local Smartphone Manufacturing Volume Grows 7% YoY

OPPO, which also makes realme and OnePlus smartphones in the country, led the ‘Made in India’ shipments with a 22% YoY growth.
Samsung took the second spot in terms of units but was the top manufacturer in terms of value.
Bharat FIH was the top third-party EMS provider, followed by Dixon Technologies.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – June 16, 2022

‘Made in India’ smartphone shipments grew 7% YoY in Q1 2022 to reach over 48 million units, according to the latest research from Counterpoint’s Make in India service. The local smartphone manufacturing ecosystem stayed resilient amid global component shortages.

Commenting on the local manufacturing ecosystem, Senior Research Analyst Prachir Singh said, “Smartphone manufacturing is increasing in India. In 2021, the shipments of ‘Made in India’ smartphones crossed 190 million units. The increasing smartphone demand in India as well as increasing exports are the major reasons for the continued growth. Support has also come from the Indian government’s various initiatives to increase local manufacturing. However, the manufacturing of feature phones declined 41% YoY in Q1 2022 due to falling demand for the past few quarters.”

On the manufacturing landscape and strategies, Singh said, “In the smartphone segment, the third-party EMS (electronic manufacturing services) providers captured 42% share in local manufacturing, registering 4% YoY growth in terms of shipments. Bharat FIH was the top EMS provider in Q1 2022, followed by Dixon Technologies. However, in-house manufacturing capabilities have also grown. In-house smartphone manufacturing share crossed 58% during the quarter. OPPO led the ‘Made in India’ smartphone shipments with a 22% share, followed closely by Samsung at 21%. In the feature phone segment, however, EMS’ share crossed 68% in Q1 2022. Lava led the ‘Made in India’ feature phone shipments with a 21% share. Among the third-party EMS providers, Flex, Bharat FIH and Dixon Technologies led the feature phone segment.”

On the Indian government’s initiatives, Research Analyst Priya Joseph said, “The government’s focus has been to make India a manufacturing hub. It has taken a lot of initiatives in this direction. The Production Linked Incentive (PLI) scheme for mobile handsets proved to be an accelerator for local manufacturing. Similar PLI schemes have been introduced by the government in other strategic sectors, such as solar, semiconductors, automotive and electronic products. In the current times of uncertainties triggered by the pandemic, war and other factors, the government feels it is important to have a resilient economy that can sustain such shocks. Signing up for the recent Indo-Pacific Economic Framework for Prosperity (IPEF) is one such example of the government’s intention to make clear its goal of becoming the next tech hub.”

Going forward, we believe India’s handset manufacturing will grow 4% YoY in 2022. Also, the increasing local value addition will drive the idea of “Aatmanirbhar Bharat” (Self-reliant India). The government is focusing a lot on increasing localization, and with the Semiconductor PLI, it aims to make India a prominent destination for semiconductor and electronics manufacturing.

Note:

Oppo manufactures smartphones for Oppo, realme and OnePlus
Bharat FIH manufactures smartphones for Xiaomi
Dixon Technologies manufactures smartphones for Samsung

Background

Analyst Contacts:

Prachir Singh

Priya Joseph

Tarun Pathak

Follow Counterpoint Research

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Insights Tag： Make in India

India Mobile Phone Cumulative Production Crosses 2 Billion Units Under ‘Make in India’ Initiative